Gold (XAU/USD) completed rejection from mid-September high at $1973.80 and a breach of the $1850 would turn to a more negative bias for the yellow metal, strategists at Commerzbank report.
Key quotes
“Gold has rallied towards and failed just ahead of the 1973.80 mid-September high, and again sold off to the 1850 low, where it is holding. This has served to neutralise the market further and for now, we are neutral.”
“Should a breach of the 1850 support be seen we would allow for further losses to the 200-day ma at 1784.43 and possibly the May high at 1765.61. This in turn protects the 1714.27 55-week ma.”
“In order to regenerate upside interest, the market will need to regain the mid-September high at 1973.8, for a rally to the 78.6% retracement at 2025 which guards the target band of 2070/2088.”
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